Latest news with #UniversalCreditandPersonalIndependencePaymentBill
Daily Mirror
4 hours ago
- Business
- Daily Mirror
What you need to know about DWP disability benefit cuts as big changes unveiled
Work and Pensions Secretary Liz Kendall has published the Universal Credit and Personal Independence Payment Bill to enact plans to slash £5billion from the welfare bill by 2030 MPs will get a vote on plans for sweeping cuts to sickness and disability benefits in the coming weeks. Work and Pensions Secretary Liz Kendall has published new legislation - known as the Universal Credit and Personal Independence Payment Bill - to enact plans to slash £5billion from the welfare bill by 2030. The plans have been branded "catastrophic" by charities and sparked backlash among Labour MPs, with dozens poised to rebel when the bill is put to the test in the Commons. But Ms Kendall argued that the broken benefits system could collapse without reform, and said the bill "represents a new social contract and marks the moment we take the road of compassion, opportunity and dignity". Here's what you need to know about the changes. What are the changes to PIP? The Personal Independence Payment (PIP) is paid to people in England and Wales who need assistance with daily tasks due to a long term physical or mental condition. The payment, which starts at £73.90 per week, is not means-tested and can be paid to people who are working. Eligibility is calculated using a points-based system, based on how difficult someone finds it to perform tasks like washing themselves and getting dressed. From November 2026, people would need to score a minimum of four points in at least one daily activity to qualify. Needing help to get in or out of the shower, or supervision to use the toilet are measures that don't meet this threshold. The mobility component of PIP, which starts at £29.20 a week, is not affected. An estimated 150,000 people will lose access to carers benefits by 2029/30 due to the changes. What are the changes to Universal Credit? The changes relate to the health element of Universal Credit (UC), which is paid on top of the standard rate for people who have a health condition or disability that limits how much they can work. The Government says this disincentivises people to try to get back into work as it is more generous than the standard rate. So the standard allowance will rise at an above inflation rate over the next four years - estimated to be worth £725 by 2029/30 for a single household 25 or over. But existing claimants will see the health element frozen at £97 per week from April next year. What support is being given to those affected? People who face cuts to their benefits will be shielded from a cliff edge by a 13-week transition period. The DWP said it was one of the most generous ever - more than three times the length of protection provided for the transition from the previous Disability Living Allowance to PIP. Young people aged between 18 and 21 in England will be offered a "youth guarantee" of training or work. The Government will also introduce a "right to try" so people don't automatically lose their benefits if they start a job but it doesn't work out. There will be a £1 billion employment support package to support more people with health conditions back into work.
ITV News
5 hours ago
- Business
- ITV News
Government publishes flagship welfare reforms as Labour rebellion looms
The government is braced for a renewed back-bench backlash after publishing plans to save billions from the welfare bill, as ITV News Political Correspondent Romilly Weeks reports The introduction of proposed legislation to reform the welfare system 'marks the moment we take the road of compassion, opportunity and dignity', the work and pensions secretary has said. Liz Kendall's words come amid a backlash from some Labour MPs who have criticised the 'awful' cuts to welfare – which the government hopes can save up to £5 billion a year. The reforms – aimed at encouraging more people off sickness benefits and into work – are set to include the tightening of criteria for personal independence payment (Pip), which is the main disability benefit, as well as a cut to the sickness-related element of universal credit (UC) and delayed access to only those aged 22 and over. Ministers are likely to face a Commons stand-off with backbench Labour MPs over their plans, with dozens of them last month saying the proposals were 'impossible to support'. In what could be seen as an attempt to head off some opposition, the legislation, known as the Universal Credit and Personal Independence Payment Bill – will give existing claimants a 13-week period of financial support. The Department for Work and Pensions said this will apply to those affected by changes to the Pip daily living component, including those who lose their eligibility to Carers Allowance and the carer's element of UC. But campaigners, including disability equality charity Scope, said the longer transition period, up from an originally expected four weeks, 'will only temporarily delay a cut and disabled people will continue to be living with extra costs when it comes to an end'. Food bank network Trussell said: 'The last-minute details on protections offer something for a small proportion of people, but even they will still see a real-terms cut. 'The reality of this Bill is still record cuts in support for disabled people, and the biggest cuts to social security since 2015.' Contrary to Kendall's words, learning disability charity Mencap accused the government of having 'confirmed the choice to turn its back on thousands of disabled people and by pushing ahead with these welfare reforms, they are causing a huge amount of anxiety'. Kendall said: 'Our social security system is at a crossroads. Unless we reform it, more people will be denied opportunities, and it may not be there for those who need it. 'This legislation represents a new social contract and marks the moment we take the road of compassion, opportunity and dignity. 'This will give people peace of mind, while also fixing our broken social security system so it supports those who can work to do so while protecting those who cannot – putting welfare spending on a more sustainable path to unlock growth as part of our Plan for Change.' As the Bill was formally introduced to the Commons on Wednesday, and the question asked as to what the next date for debate will be, Labour backbencher and former shadow chancellor John McDonnell could be heard to say 'Never'. A date has not yet been confirmed. Louise Murphy, senior economist at the Resolution Foundation think tank, said the longer period of protection for those affected by Pip cuts is 'a sensible tweak that should ease the blow for those who are no longer eligible for support'. But she criticised extra funding for employment support not coming fully into effect until 2029 at the earliest, saying: 'While ministers have softened the stick of welfare cuts, they have not strengthened the carrot of greater employment support.' Sir Keir Starmer said he was 'determined' to ensure the reforms go through because he feels the welfare system 'doesn't work for anyone'. 'It doesn't work for those that want to get back to work, and it certainly doesn't work for the taxpayer,' the Prime Minister told Good Morning Britain, saying 'those that need to be protected should be protected'. 'If you need help in support to get into work, the Government should be providing that support and help to get into work,' he said. 'If you do have conditions, disabilities that mean it is impossible for you to work, then you need to be properly protected and supported.' How many people will be affected? The latest data, published on Tuesday, showed that more than 3.7 million people in England and Wales are claiming Pip, with teenagers and young adults making up a growing proportion. The figures, published by the Department for Work and Pensions, showed there were a record 3.74 million people in England and Wales claiming Pip as of April this year. The figure is up from 3.69 million in January and a jump of 200,000 from 3.54 million a year earlier. Data for Pip claimants begins in January 2019, when the number stood at 2.05 million. Pip is a benefit aimed at helping with extra living costs if someone has a long-term physical or mental health condition or disability and difficulty doing certain everyday tasks or getting around because of their condition. An impact assessment published alongside Wednesday's Bill introduction, confirmed previously published estimates that changes to Pip entitlement rules could see about 800,000 people lose out, with an average loss of £4,500 per year. Kendall previously said there are 1,000 new Pip awards every day – 'the equivalent of adding a city the size of Leicester every single year'. The impact assessment also confirmed a previous estimate that some 250,000 more people, including 50,000 children, are likely to fall into relative poverty after housing costs in 2029/2030, although the government repeated that this does not take into account the potentially positive impact of £1 billion annual funding by then for measures to support people into work. Changes to UC are expected to see an estimated 2.25 million current recipients of the health element impacted, with an average loss of £500 per year. But the government said around 3.9 million households not on the UC health element are expected to have an average annual gain of £265 from the increase in the standard UC allowance. While all of the Bill applies to England and Wales, only the UC changes apply to Scotland. The government said there are equivalent provisions to legislate for Northern Ireland included in the Bill.
Glasgow Times
5 hours ago
- Business
- Glasgow Times
Welfare reform marks moment of compassion, says Kendall amid backbench anger
Liz Kendall's words come amid a backlash from some Labour MPs who have criticised the 'awful' cuts to welfare – which the Government hopes can save up to £5 billion a year. The reforms – aimed at encouraging more people off sickness benefits and into work – are set to include the tightening of criteria for personal independence payment (Pip), which is the main disability benefit, as well as a cut to the sickness-related element of universal credit (UC) and delayed access to only those aged 22 and over. Ministers are likely to face a Commons stand-off with backbench Labour MPs over their plans, with dozens of them last month saying the proposals were 'impossible to support'. In what could be seen as an attempt to head off some opposition, the legislation – known as the Universal Credit and Personal Independence Payment Bill – will give existing claimants a 13-week period of financial support. The Department for Work and Pensions said this will apply to those affected by changes to the Pip daily living component, including those who lose their eligibility to Carers Allowance and the carer's element of UC. But campaigners, including disability equality charity Scope, said the longer transition period, up from an originally expected four weeks, 'will only temporarily delay a cut and disabled people will continue to be living with extra costs when it comes to an end'. Food bank network Trussell said: 'The last-minute details on protections offer something for a small proportion of people, but even they will still see a real-terms cut. 'The reality of this Bill is still record cuts in support for disabled people, and the biggest cuts to social security since 2015.' Contrary to Ms Kendall's words, learning disability charity Mencap accused the Government of having 'confirmed the choice to turn its back on thousands of disabled people and by pushing ahead with these welfare reforms, they are causing a huge amount of anxiety'. Ms Kendall said: 'Our social security system is at a crossroads. Unless we reform it, more people will be denied opportunities, and it may not be there for those who need it. 'This legislation represents a new social contract and marks the moment we take the road of compassion, opportunity and dignity. 'This will give people peace of mind, while also fixing our broken social security system so it supports those who can work to do so while protecting those who cannot – putting welfare spending on a more sustainable path to unlock growth as part of our Plan for Change.' As the Bill was formally introduced to the Commons on Wednesday, and the question asked as to what the next date for debate will be, Labour backbencher and former shadow chancellor John McDonnell could be heard to say 'Never'. A date has not yet been confirmed. I'll vote against these awful welfare reforms. A Labour government should lift people out of poverty, not put people into it. If you agree, then please write to your MP and tell them that. — Brian Leishman (@BrianLeishmanMP) June 17, 2025 Louise Murphy, senior economist at the Resolution Foundation think tank said the longer period of protection for those affected by Pip cuts is 'a sensible tweak that should ease the blow for those who are no longer eligible for support'. But she criticised extra funding for employment support not coming fully into effect until 2029 at the earliest, saying: 'While ministers have softened the stick of welfare cuts, they have not strengthened the carrot of greater employment support.' Sir Keir Starmer said he was 'determined' to ensure the reforms go through because he feels the welfare system 'doesn't work for anyone'. 'It doesn't work for those that want to get back to work, and it certainly doesn't work for the taxpayer,' the Prime Minister told Good Morning Britain, saying 'those that need to be protected should be protected'. 'If you need help in support to get into work, the Government should be providing that support and help to get into work,' he said. 'If you do have conditions, disabilities that mean it is impossible for you to work, then you need to be properly protected and supported.' The latest data, published on Tuesday, showed that more than 3.7 million people in England and Wales are claiming Pip, with teenagers and young adults making up a growing proportion. (PA Graphics) The figures, published by the Department for Work and Pensions, showed there were a record 3.74 million people in England and Wales claiming Pip as of April this year. The figure is up from 3.69 million in January and a jump of 200,000 from 3.54 million a year earlier. Data for Pip claimants begins in January 2019, when the number stood at 2.05 million. Pip is a benefit aimed at helping with extra living costs if someone has a long-term physical or mental health condition or disability and difficulty doing certain everyday tasks or getting around because of their condition. Work and Pensions Secretary Liz Kendall leaves Downing Street after a Cabinet meeting (Stefan Rousseau/PA) An impact assessment published alongside Wednesday's Bill introduction, confirmed previously published estimates that changes to Pip entitlement rules could see about 800,000 people lose out, with an average loss of £4,500 per year. Ms Kendall previously said there are 1,000 new Pip awards every day – 'the equivalent of adding a city the size of Leicester every single year'. The impact assessment also confirmed a previous estimate that some 250,000 more people, including 50,000 children, are likely to fall into relative poverty after housing costs in 2029/2030, although the Government repeated that this does not take into account the potentially positive impact of £1 billion annual funding by then for measures to support people into work. Changes to UC are expected to see an estimated 2.25 million current recipients of the health element impacted, with an average loss of £500 per year. But the Government said around 3.9 million households not on the UC health element are expected to have an average annual gain of £265 from the increase in the standard UC allowance. While all of the Bill applies to England and Wales, only the UC changes apply to Scotland. The Government said there are equivalent provisions to legislate for Northern Ireland included in the Bill.
Leader Live
5 hours ago
- Business
- Leader Live
Welfare reform marks moment of compassion, says Kendall amid backbench anger
Liz Kendall's words come amid a backlash from some Labour MPs who have criticised the 'awful' cuts to welfare – which the Government hopes can save up to £5 billion a year. The reforms – aimed at encouraging more people off sickness benefits and into work – are set to include the tightening of criteria for personal independence payment (Pip), which is the main disability benefit, as well as a cut to the sickness-related element of universal credit (UC) and delayed access to only those aged 22 and over. Ministers are likely to face a Commons stand-off with backbench Labour MPs over their plans, with dozens of them last month saying the proposals were 'impossible to support'. In what could be seen as an attempt to head off some opposition, the legislation – known as the Universal Credit and Personal Independence Payment Bill – will give existing claimants a 13-week period of financial support. The Department for Work and Pensions said this will apply to those affected by changes to the Pip daily living component, including those who lose their eligibility to Carers Allowance and the carer's element of UC. But campaigners, including disability equality charity Scope, said the longer transition period, up from an originally expected four weeks, 'will only temporarily delay a cut and disabled people will continue to be living with extra costs when it comes to an end'. Food bank network Trussell said: 'The last-minute details on protections offer something for a small proportion of people, but even they will still see a real-terms cut. 'The reality of this Bill is still record cuts in support for disabled people, and the biggest cuts to social security since 2015.' Contrary to Ms Kendall's words, learning disability charity Mencap accused the Government of having 'confirmed the choice to turn its back on thousands of disabled people and by pushing ahead with these welfare reforms, they are causing a huge amount of anxiety'. Ms Kendall said: 'Our social security system is at a crossroads. Unless we reform it, more people will be denied opportunities, and it may not be there for those who need it. 'This legislation represents a new social contract and marks the moment we take the road of compassion, opportunity and dignity. 'This will give people peace of mind, while also fixing our broken social security system so it supports those who can work to do so while protecting those who cannot – putting welfare spending on a more sustainable path to unlock growth as part of our Plan for Change.' As the Bill was formally introduced to the Commons on Wednesday, and the question asked as to what the next date for debate will be, Labour backbencher and former shadow chancellor John McDonnell could be heard to say 'Never'. A date has not yet been confirmed. I'll vote against these awful welfare reforms. A Labour government should lift people out of poverty, not put people into it. If you agree, then please write to your MP and tell them that. — Brian Leishman (@BrianLeishmanMP) June 17, 2025 Louise Murphy, senior economist at the Resolution Foundation think tank said the longer period of protection for those affected by Pip cuts is 'a sensible tweak that should ease the blow for those who are no longer eligible for support'. But she criticised extra funding for employment support not coming fully into effect until 2029 at the earliest, saying: 'While ministers have softened the stick of welfare cuts, they have not strengthened the carrot of greater employment support.' Sir Keir Starmer said he was 'determined' to ensure the reforms go through because he feels the welfare system 'doesn't work for anyone'. 'It doesn't work for those that want to get back to work, and it certainly doesn't work for the taxpayer,' the Prime Minister told Good Morning Britain, saying 'those that need to be protected should be protected'. 'If you need help in support to get into work, the Government should be providing that support and help to get into work,' he said. 'If you do have conditions, disabilities that mean it is impossible for you to work, then you need to be properly protected and supported.' The latest data, published on Tuesday, showed that more than 3.7 million people in England and Wales are claiming Pip, with teenagers and young adults making up a growing proportion. The figures, published by the Department for Work and Pensions, showed there were a record 3.74 million people in England and Wales claiming Pip as of April this year. The figure is up from 3.69 million in January and a jump of 200,000 from 3.54 million a year earlier. Data for Pip claimants begins in January 2019, when the number stood at 2.05 million. Pip is a benefit aimed at helping with extra living costs if someone has a long-term physical or mental health condition or disability and difficulty doing certain everyday tasks or getting around because of their condition. An impact assessment published alongside Wednesday's Bill introduction, confirmed previously published estimates that changes to Pip entitlement rules could see about 800,000 people lose out, with an average loss of £4,500 per year. Ms Kendall previously said there are 1,000 new Pip awards every day – 'the equivalent of adding a city the size of Leicester every single year'. The impact assessment also confirmed a previous estimate that some250,000 more people, including 50,000 children, are likely to fall into relative poverty after housing costs in 2029/2030, although the Government repeated that this does not take into account the potentially positive impact of £1 billion annual funding by then for measures to support people into work. Changes to UC are expected to see an estimated 2.25 million current recipients of the health element impacted, with an average loss of £500 per year. But the Government said around 3.9 million households not on the UC health element are expected to have an average annual gain of £265 from the increase in the standard UC allowance. While all of the Bill applies to England and Wales, only the UC changes apply to Scotland. The Government said there are equivalent provisions to legislate for Northern Ireland included in the Bill.
Scottish Sun
7 hours ago
- Business
- Scottish Sun
DWP issues update on PIP reform plans ahead of major welfare changes
Around 800,000 people will have their payments stopped SHAKE UP DWP issues update on PIP reform plans ahead of major welfare changes Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) THE Department for Work and Pensions has issued a major update on PIP reform plans ahead of a major shake-up. In March, the government revealed plans to tighten the rules for claiming personal independence payments (PIP). Sign up for Scottish Sun newsletter Sign up 1 The government also plans to cut the extra health payments available to those on Universal Credit The goal is to shave £5billion a year off the nation's soaring welfare budget and drive more people to return to work. Today, the proposed legislation to make this happen was introduced in Parliament for the first time. The DWP's Universal Credit and Personal Independence Payment Bill explains how the government plans to reduce the number of people claiming PIP by making the rules for eligibility stricter. Currently, you qualify for PIP by earning enough points across different tasks, like cooking, cleaning, or managing money. But, under the new rules, you'll need to score at least four points on one specific daily living activity to qualify. This means simply having minor difficulties across several areas may no longer be enough to qualify. This change could see about 800,000 people lose out, with an average loss of £4,500 per year, according to government's own impact assessment. However, the Bill also introduces measures to protect existing claimants who might lose their payments. If someone loses their PIP under the new rules, they will still receive payments for 13 weeks as a safety net. This also applies to related benefits, such as carer's allowance. But campaigners, including disability equality charity Scope, said the longer transition period, up from an originally expected four weeks, "will only temporarily delay a cut and disabled people will continue to be living with extra costs when it comes to an end". Rachel Reeves delivers the Spring Budget in full Food bank network Trussell said: "The last-minute details on protections offer something for a small proportion of people, but even they will still see a real-terms cut. "The reality of this Bill is still record cuts in support for disabled people, and the biggest cuts to social security since 2015." The Universal Credit and Personal Independence Payment Bill has also set out how the government proposes to slash incapacity benefits offered to those on Universal Credit. It also includes a proposal to hike the Universal Credit standard allowance above inflation over the next four years. What is PIP and who is eligible? HOUSEHOLDS suffering from a long-term illness, disability or mental health condition can get extra help through personal independence payments (PIP). The maximum you can receive from the Government benefit is £187.45 a week. PIP is for those over 16 and under the state pension age, currently 66. Crucially, you must also have a health condition or disability where you either have had difficulties with daily living or getting around - or both - for three months, and you expect these difficulties to continue for at least nine months (unless you're terminally ill with less than 12 months to live). You can also claim PIP if you're in or out of work and if you're already getting limited capability for work and work-related activity (LCWRA) payments if you claim Universal Credit. PIP is made up of two parts and whether you get one or both of these depends on how severely your condition affects you. You may get the mobility part of PIP if you need help going out or moving around. The weekly rate for this is either £29.70 or £77.05. On the daily living part of PIP, the weekly rate is either £73.90 or £110.40 - and you could get both elements, so up to £187.45 in total. You can claim PIP at the same time as other benefits, except the armed forces independence payment. What's happening with Universal Credit? The government plans to freeze the extra health payments available to those on Universal Credit who are unable to work. For people already on Universal Credit, the current incapacity payment of £416.19 a month for those unable to work will be frozen until 2030. This means the payment will no longer increase with inflation each spring. However, for new claims starting from April 2026, this very same payment will be cut by half, to approximately £208 a month (or £50 a week). This reduced amount will also be frozen until 2030, meaning new claimants will receive significantly less extra support. At the same time, the government is proposing to hike the Universal Credit standard allowance above inflation over the next four years. It believes that raising the standard allowance for everyone while reducing the health top-up will make returning to work more financially worthwhile and possible. However, charities disagree. Anela Anwar, chief executive of anti-poverty charity Z2K, said: "We all know that our broken disability benefits system needs reform. "But these reckless plans, which official estimates show will plunge more than one million disabled people into poverty or even deeper into poverty, do not represent meaningful reform. "Government suggestions that these cuts are about helping people into work are entirely disingenuous. "Experts agree that only between 1% and 3% of those who will be hit by the cuts are expected to find work as a result." The government also plans to get rid of the Work Capability Assessment (WCA), which is used to decide if someone qualifies for Universal Credit health payments, at a later date. Instead, the DWP will use the PIP assessment to decide if someone is eligible for these health payments. The DWP aims to make this change by 2028.
